Basically Chart patterns tell me what to play. TA supports a buy decision and resistance break triggers the entry.
TA indicators and overlays show change in the stocks momentum, volume, and trend. Entry/exit indicators I use are DMI and 5.10.20 MAs, Support indicators are StochRSI and CMF. MOMO and volume, support trend change breakout entry/exit signals.
Chart patterns present target prices for breakout runs or retraces. And because of the historical relabilty of stocks preforming during chart patterns, the likely-hood a stock price will move in a certain direction increases. More so then charts without patterns.
Trading on technicals; I want a chart pattern first. That way I know the odds for a move are in my favor. Next I want positive TA indicators. That way I know retail sentiment is in my favor. And last I want good volume. That way I can expect increasing support for any breakout.
I teach study chart patterns 1st, TA indicators 2nd, and support/resistance 3rd. 4th understand how gaps effect future.
